Shannon in shock over Tellabs closure

THE closure of a communications equipment-making plant in Shannon will cost the local economy in excess of €20 million annually.

More than 400 workers at the Tellabs factory are without jobs after the US company announced yesterday it will close in December.

The Shannon District Chamber of Commerce last night said the community is in shock following the announcement. Tellabs’ annual wage bill is estimated at 12m alone.

“This is a terrible blow and it’s hard to know how these jobs are going to be replaced. It will cost the area about 20 million annually,” chamber president Paddy Purcell said.

The lack of flights connecting Shannon to Europe and the rest of the country is causing major difficulties for industries trying to remain competitive in the region, the chamber claim.

“There is a huge shortage of flights from the airport and this makes it difficult to find a replacement industry. Even Kerry and Galway have a number of connecting daily flights with Dublin,” Mr Purcell said.

The global downturn was the main reason for the job losses, according to Shannon Development.

“The Tellabs’ closure is indicative of the downturn being experienced globally in the telecoms and IT sectors. This highlights the need to ensure the Shannon region remains a competitive and attractive location for international business,” said chief executive Kevin Thompstone.

He announced Shannon Development has established a group to work with Tellabs’ staff and management before the company shuts. The group will try to find other employment for the company’s skilled workers.

The company insisted yesterday its Shannon facility was an efficient operation but a downturn in the world economy meant the closure was unavoidable.

“This is a very sad day for our employees in Shannon, but it is something we can’t avoid because our customers continue to spend less,” the Shannon factory senior vice president Pat Shanahan said. “These actions are unfortunate because they affect a lot of talented people.”

The company closed its plant in Drogheda in August last year with the loss of 204 jobs. Some 50 workers from Drogheda transferred to the Shannon plant following the closure. Tellabs also closed two plants in the US within the last 12 months.

Most telephone calls and internet communications in the US are operated by high tech equipment made by Tellabs.

The company is offering staff a statutory redundancy package plus six weeks wages. Tellabs will also provide financial advice to employees.

The company, which once employed 760 staff at its Clare plant, was regarded as one of the most successful plants in the Shannon region.